SEEQ Technology Inc. Reports Fiscal 1999 Second-Quarter Results
BUSINESS WIRE - 04:02 p.m Apr 15, 1999 Eastern
FREMONT, Calif.--April 15, 1999--SEEQ Technology Inc.(Nasdaq/NMS:SEEQ)
Thursday announced financial results for its fiscal 1999 second
quarter and six-month period ended March 31, 1999.
For the quarter, the company reported a net loss of $862,000, or $0.03 per share,
compared with net income of $973,000, or $0.03 per share, for the same period last
year. Revenues for the 1999 second quarter totaled $6.8 million, vs. $7.9 million for the
year-ago period.
Results for the 1999 quarter include one-time charges of approximately $550,000, or
$0.02 per share, related to the proposed merger of the company with LSI Logic Corp.
(NYSE:LSI), announced on Feb. 22, including investment-banker, attorney and
accounting fees.
For the six months ended March 31, 1999, the company reported a net loss of $2.1
million, or $0.07 per share, compared with net income of $2.1 million, or $0.06 per
share, for the first six months of 1998. Revenues for the six-month period were $12.4
million in 1999, vs. $15.4 million in 1998.
Phil Salsbury, SEEQ's president and chief executive officer, said: "We were pleased that
revenues grew sequentially by 20 percent over the December quarter, and that our
bookings increased as well. Our book-to-bill ratio was significantly above unity, giving
us optimism for continuing revenue growth in coming quarters.
"During the quarter, we began volume production of our new Fast Ethernet Quad PHY
transceiver, a product that is enjoying increasing popularity with some of our customers.
While our manufacturing team did an outstanding job in supporting the production ramp,
gross margins were negatively affected by startup costs and competitive pressures related
to these new PHYs.
"We expect margins to improve in coming quarters as a result of sustained
manufacturing volumes coupled with ongoing cost-reduction efforts.
"Finally, as announced in February, we are proceeding with the pending merger of our
company with LSI Logic. We are currently awaiting regulatory approval, and we expect
to complete the transaction in the June quarter."
SEEQ Technology is a leading manufacturer of data-communications semiconductor
products. With headquarters in Fremont, the company is a LAN pioneer, having
introduced the first integrated Ethernet controller in 1982.
SEEQ's product families include Gigabit Ethernet, Fast Ethernet (100Base-T) and ATM
components. SEEQ leads the Ethernet Media Access Controller (MAC) market and
offers the broadest line of Fast Ethernet MACs and PHYs in the industry.
The company's Ethernet solutions are used in industry-leading applications, including
network interface cards, hubs/bridges/routers, switches and test equipment. For further
information about SEEQ and its products, visit the company's World Wide Web site at
seeq.com.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995:
Statements in this news release regarding SEEQ's business that are not historical facts
are "forward-looking statements" that involve risks and uncertainties, including, but not
limited to, market-acceptance risks, the effect of economic conditions, the impact of
competitive products and pricing, product development, commercialization and
technological difficulty, and capacity and supply constraints, in addition to the factors
listed in SEEQ's most recent Annual Report on Form 10-K "Management's Discussion
and Analysis of Financial Condition and Results of Operations, Factors Affecting Future
Results." SEEQ assumes no obligation to update the information included in this news
release.SEEQ TECHNOLOGY INC.
CONDENSED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
Three months ended Six months ended
Mar. 31, Mar. 31, Mar. 31, Mar. 31,
1999 1998 1999 1998
Revenues $ 6,780 $ 7,880 $12,413 $15,432
Costs and expenses:
Cost of revenues 4,825 4,442 9,038 8,625
Research and development 1,100 1,072 2,447 1,922
Marketing, general and
administrative 1,730 1,445 3,072 2,979
Total costs and expenses 7,655 6,959 14,557 13,526
Income (loss) from operations (875) 921 (2,144) 1,906
Interest expense (95) (80) (197) (168)
Interest and other income, net 108 164 223 299
Income (loss) before income
taxes (862) 1,005 (2,118) 2,037
Income tax (provision), benefit 0 (32) 0 16
Net income (loss) $ (862) $ 973 $(2,118) $ 2,053
Net income (loss) per share:
Basic $ (0.03) $ 0.03 $ (0.07) $ 0.07
Diluted $ (0.03) $ 0.03 $ (0.07) $ 0.06
Shares used in per share calculation:
Basic 32,251 30,624 32,123 30,549
Diluted 32,251 32,036 32,123 32,315
SEEQ TECHNOLOGY INC.
CONDENSED BALANCE SHEETS
(in thousands)
(Unaudited)
Mar. 31, Sept. 30,
1999 1998
Assets
Current assets:
Cash, cash equivalents $ 8,970 $10,172
Accounts receivable, less allowances 4,937 5,971
Inventories 4,053 4,080
Deposits and prepaid expenses 514 426
Total current assets 18,474 20,649
Net property and equipment 6,039 6,560
Other assets 145 1,540
Total assets $24,658 $28,749
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 3,859 $ 3,315
Accrued salaries, wages and employee benefits 702 732
Other accrued liabilities 1,435 3,032
Current portion of long-term obligations 1,583 1,644
Total current liabilities 7,579 8,723
Long-term obligations 3,588 4,448
Total liabilities 11,167 13,171
Stockholders' equity 13,491 15,578
Total liabilities and stockholders' equity $24,658 $28,749 Copyright 1999, Business Wire
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